Revol Wireless reduces number of company-owned stores

Revol Wireless now owns about 20 stores, down from about 40 in mid-2012.The Independence-based company recently closed 10 of its stores, an action that came on top of the wireless phone service carrier handing off another 10 stores to independent dealers since the middle of last year, CEO Timothy Yager said.Revol sells its phones and wireless plans through about 30 more independently owned Revol stores, as well as “a few hundred” stores that serve other carriers, Mr. Yager said.The stores that closed were throughout Revol's footprint, which includes the Cleveland, Columbus and Indianapolis areas. They tended to be “underperforming” stores that were close to other locations run by dealers, Mr. Yager said.Revol aims to sell more phones and wireless plans through dealers, which should help shield the company from variable costs, he said. Plus, independent owners often are more connected to the communities they serve, he said.“It's really the way the industry is going,” Mr. Yager said.Revol was taken over by creditors in 2011 because it could not make payments on $150 million in debt that it took on six years earlier, shortly after the company was started. The creditors hired a new management team, which included Mr. Yager.He noted that the company is in a “hyper-competitive” industry dominated by four big companies: Verizon Wireless, AT&T, Sprint and T-Mobile. That's especially true now, because some of them have brands that compete more directly with Revol.For instance, in May AT&T launched Aio Wireless, which like Revol offers prepaid plans at relatively low rates. Now the telecommunications giant is attempting to buy Leap Wireless, which focuses on a similar market through its Cricket brand.“It's a competitive environment,” Mr. Yager said. “I wish it was a little less competitive.”He would not say how many people work for Revol today. A year ago, the company employed roughly 350 people, including about 125 in Independence.

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